Economic Policy Reform and Competitiveness Project (EPRC)
Chemonics
www.eprc–chemonics.biz
Economic Policy Support
Initial demand analysis for Zamyn Uud Logistics Park completed: With assistance from international expert Patricio Mansilla, the project concluded an initial analysis of charges for road-to-rail and rail-to-rail cargo trans-shipment in Zamyn Uud. Using data collected from customs and railways, the project processed and analyzed monthly data from the last three years of operations to arrive at initial estimates of the revenue of the “core” business of the proposed logistics park—trans-shipment charges—and prepare twenty-year projections of revenue streams, under different scenarios, for the proposed PPP (public-private partnership) facility.
Workshops on Zamyn Uud Logistics Park demand analysis: EPRC organized and held three workshops during the month to present, discuss, and validate the findings of the initial demand analysis for the proposed Zamyn Uud PPP logistics facility. The first workshop was held on 7 May for the Railway Regulatory Authority; the second was co-organized with the Mongolian Freight Forwarders Association and held on 25 May; the third workshop was held for Customs on 26 May.
Customs risk management program: In line with recommendations for implementation of the Single Electronic Window for Foreign Trade Facilitation (SEW) and the World Customs Organization (WCO), the Mongolian Customs Administration (MCGA) requested project assistance for the initiation of a risk management program. After four working meetings, the project and Customs concluded the definition of the terms of reference for the initial assignment and began recruitment of an international expert to provide such assistance.
Review of implementation status of MoU with the General Agency for Specialized Inspection (GASI): On 14 May, the project held a meeting with the GASI Director, Mr. Shirevdamba, and agency staff to review the status of implementation of the Memorandum of Understanding (MoU) signed 20 February 2009. The review focused on results achieved in the Zamyn Uud GASI offices to support the installation and operations of a local area network (LAN) and activities scheduled for the next period. Development of a new website using the latest version of Joomla! 1.5 Content Management System (CMS) will be a major activity for the next period. The new website will feature an improved information structure and user-friendly content focusing on GASI’s general services for citizens and the private sector. Web administrators from GASI will be participating in the development process to ensure ongoing website maintenance after its completion and initial launch.
Financial Markets Support
Mongolian Corporate Governance Development Center: The Mongolian Corporate Governance Development Center’s (MCGDC) training program curriculum was slightly expanded from the initial twelve modules to a total of fourteen modules. The new modules will help trainers develop teaching skills and write case studies. The project also assisted the MCGDC in negotiating a cooperation agreement with IFC to leverage their global outreach. IFC will assist MCGDC members to develop corporate governance consulting skills and will assist the Center to develop and publish corporate governance educational materials. The Center recruited new individual and institutional members, including the thirty previously trained directors and educators, to form the core membership structure. EPRC is currently helping the Center develop the curriculum for the rest of 2009 and a longer term plan for 2010, as well as preparations for the Center’s first General Members Meeting, scheduled for Tuesday 2 June, with the support of Khan Bank. The second train-the-trainers program is scheduled for delivery during the first week of June.
Credit Information Center (CIC): The CIC was registered as a Mongolian Limited Liability Company on 1 April 2009 and held its inaugural shareholders meeting on 22 May 2009. In accordance with EPRC recommendations, the shareholders voted unanimously to increase the paid-in capital by $500,000. The increase in paid-in capital enables the company to execute its business plan to become Mongolia’s first private credit bureau and the only credit information service providing both negative and positive information on all borrowers in Mongolia, thus reducing credit risk and eventually contributing to a reduction of the cost of credit in Mongolia.
Banking sector restructuring. With the assistance of two leading international experts, EPRC completed an assignment advising the central Bank of Mongolia on strategies and methodologies to effect banking sector restructuring and consolidation.
Energy Sector Support
Competitive electricity market design and implementation: Finalization of the rules for the new competitive market by the Market Working Group is delayed due to other critical issues that must be resolved at the next Cabinet meeting in June. Work continues on the revision of the Grid Code and preparation of vesting contracts.
Update of ERA Assessment: EPRC delivered the update of the 2006 ERA Assessment Report to all stakeholders in mid-May.
Energy Working Group and GoM/external partners meetings: The EWG postponed the meeting scheduled for 21 May until 18 June.
Action plan with MMRE: EPRC reviewed the Action Plan of the MMRE’s Energy Policy Department head, and reached agreement regarding all energy tasks/actions to be undertaken. However, the four tasks/actions requested by the Fuel Policy Department require further discussion and clarification upon the department head’s return to the country in early June.
MMRE forms Working Group to revise Energy Law: The WG formed a sub-WG to prepare the first draft of an amendment to the Energy Law, which was submitted to the full WG in mid-May for review and discussion. The WG completed the review of Chapter 1 of the draft amendment, accepting all EPRC suggestions/comments. The WG plans to have a full day offsite meeting in early June to continue review and discussion.
MMRE initiates a review of ERA’s activities: MMRE conducted the review of the ERA in mid-May and is currently drafting the report. EPRC closely monitored this activity and provided advice and counsel as needed.
Consensus Building, Public Education, and National Dialogue Support
Journalist workshop on energy sector issues. On 7 May 2009, in cooperation with the Press Institute and the Energy Regulatory Authority (ERA), ERPC co-sponsored a half-day workshop for journalists on the “Energy Sector Financial Situation and Tariff Issues.” Nineteen journalists from eight newspapers, six TV stations, two radio stations, two magazines and the MONTSAME News Agency attended the workshop. Presentations covered the energy sector’s current financial situation, tariff issues, energy sector regulation and private investment issues. The workshop included panel discussions on “Who Should Set Energy Tariffs” and “How to Protect Vulnerable Groups from Tariff Increase.” In addition to ERA leadership, panel discussion participants included Mr. Ganbaatar S., President of the Confederation of Mongolian Trade Unions (CMTU); Ms. Khajid S., from the Mongolian Society to Protect Consumer Interests; and Mr. Jantsannorov A., the Head of the Planning & Economics Division at the UB Electricity Distribution Network. Following the workshop, seven newspapers published articles and interviews on energy sector issues based on the information obtained at the workshop. Five television stations also broadcast news and interviews about the workshop and energy sector issues.
Broadcast of TV program on Ulaanbaatar heating: As part of the “Hot Topix” TV series, during the week of 4 May 2009 EPRC broadcast a TV program focused on household energy conservation. Mongolian National TV aired the program three times and UBS TV four times. The Ulaanbaatar Heating Network (UBHN) sponsored the TV program, receiving positive feedback directly from consumers. As a result of consumer feedback, UBHN requested EPRC to re-broadcast the program. The program will re-broadcast the first week of June.
Memorandum of Understanding with Cabinet Secretariat: On 21 May the project held a meeting with the Cabinet Secretariat to discuss and negotiate items of the MoU. Agreement was reached on outstanding items to move towards a final version for signature.
Joomla! Content Management System (CMS) training for government administrators. EPRC conducted a two-day Joomla! CMS training for twenty-five administrators from four government ministries and twenty-one government agencies on 19 and 26 May at the Academy of Management. The CMS training was part of the activities of “e-Government Training Week” for government administrators that were held from 18 to 29 May. The training provided detailed information on various topics including free, open-source Joomla! CMS and recent web development trends in addition to explaining the advantages of using open-source for government organizations.
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